SOQUEL -- Tenants at the not-yet-built Aptos Village development could face sky-high rents if the Soquel Creek Water District board mandates greater water conservation by commercial users Tuesday night.

"It creates an economic moratorium," said commercial real estate broker Joe Appenrodt, who has been talking with prospective tenants for the Barry Swenson Builder project, approved by county supervisors 10 months ago. "It's hard for the village to proceed."

A public hearing on the conservation policy is slated for 7 p.m. Tuesday at the water district offices, 5180 Soquel Drive.

The district, which requires water offset fees of 120 percent for development, is proposing to raise those fees to 160 percent for single-family residential and 220 percent for other development.

The proposal came out of board discussion last month on how to protect its two aquifers from saltwater intrusion, which has crept from Aptos to Live Oak, in lieu of a moratorium on all new uses.

Board President Tom LaHue said he favored a more stringent offset rather than a moratorium.

Director Bruce Daniels suggested the 220 percent savings for commercial developments after staff said there was no data on multifamily or commercial water use. Since the water offset policy was adopted 10 years ago, most of the water savings came from residential development. Only five commercial users participated.

Appenrodt said a restaurant leasing 2,000 square feet would pay $131,000 under the current offset charge of $18,000 per acre-foot of water. If the charge increases to $40,000, as staff expect, the restaurant would pay $280,000.

"That's an onerous sum," Appenrodt said. "The rent would be sky-high."

John Hibble of the Aptos Chamber of Commerce, who has spent 10 years working to see the development become a reality, fears the project will be sunk.